Freeholder gone bankrupt

wally_2013

Hi, I own a leasehold flat and the freeholder of the building has just gone bankrupt. How does this affect me? I had a letter saying my property would be repocessed but I think this must be in error as I surely cant be repocessed if I own the leasehold? Thanks

richardw

How many flats are there in the building?
How many years are left on your lease?
Who is the letter from?
Is the freeholder a company, trust or an individual?

wally_2013

Thanks for getting backk to me.

There's two flats and a shop, I own one of the flats the another guy (who has gone bankrupt) owns the other flat and the shop.

I had a new lease when I bought the property so about 990 yrs

I think the letters from a repocession company.

The freeholders an individual I think

Thanks

richardw

Perhaps do a bit of a search online to find out a bit more about the people who sent the letter.

pinkshoes

I'm sure in this case that shop and flat and freehold will be sold in due course.

Why you have received a repossession notice I have no idea! I would write to them and inform them of their error.

Moonraker71

Hello,

Not sure if this will apply to you, and certainly don't mean to worry you, but thought I'd share my experience. A few years ago, I put my flat up for sale and accepted an offer on it, and as the process was going through it was discovered that my freeholder had gone bankrupt. In my situation, this resulted in the freehold of my property being passed to the Crown Estate and was listed as 'bona vacantia' (which literally means 'ownerless property').

Long story short is that it took eight months to sort out, my sale fell through, and I found myself thousands of pounds out of pocket (however, I got this back because my original solicitors settled out of court with me, for failing to alert me to the bankrupt freeholder when I bought the property – but that's another story)

However, you have been informed of the situation and are probably able to do something about it, whereas mine only came to light years down the line. I've no legal knowledge in this area and am sure someone with expertise will shed more light on it soon, but perhaps your freehold will be sold on to a new company/individual, or you will be offered the chance to purchase it yourself? Have no idea why you've been sent a repossession notice though, that seems absurd.

Good luck.

ValHaller

Moonraker71 wrote: »

Have no idea why you've been sent a repossession notice though, that seems absurd.

Yes, I have been thinking about this all day. It seems wrong - and I think that the explanation will be along the lines that the Official Receiver has taken over the freehold and knows that the property is not Vacant Possession, but does not know that the properties are actually leasehold.

Wally, can you tell us who sent the letter and who they are acting for - perhaps a quote of the key sections of the letter? And does it mention that the matter is going to court for a repo hearing or has that been done already?

xylophone

Surely the Official Receiver will be selling the freehold and the other flat and shop?

This simply means that you have a new freeholder?